Walking the floor of the iFX Expo in
Limassol, Cyprus, the big story was how payments and payment service providers are adapting
to changing demands and emerging markets, specifically the forex and crypto
spaces.
The following observations are made
following interviews with representatives of payment companies and crypto companies
that were present at the Cyprus iFX Expo (site).
🌟We’ve left a successful iFX EXPO International 2024 Day 1 behind us.
Take a look at the thrilling atmosphere!#iFXEXPOInternational2024 #iFXEXPOInternational #iFXEXPO #Cyprus #Limassol #UltimateFintech #B2Bevent #Networking #Business #Forex #Finance #Fintech #B2BMarketing pic.twitter.com/VjXMpLFzm1
— iFX EXPO (@iFXEXPO) June 20, 2024Expanding Horizons: Payment
Companies and the Forex MarketThe payment sector has witnessed
significant evolution, particularly with increasing integration into the forex
market. Historically, many payment service providers (PSPs) have viewed the
forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi
Read this Term industry as high-risk due to its association with unregulated entities
and potential for fraud. However, this perception is shifting. Providers are
recognizing the financial opportunities and are becoming more open to
collaborating with regulated forex companies to ensure safety and compliance
for their clients​​​​.
This shift is driven by the growing
number of forex traders and the need for robust payment solutions that
facilitate smooth transactions. Many payment companies have long-standing
relationships with large, regulated forex brokers, ensuring secure transactions
and maintaining market integrity. This trend is mirrored by other payment firms
looking to capitalize on the burgeoning demand for forex services, particularly
in emerging markets such as Latin America and Africa​​​​. This was evidenced by
the number of companies both based in these emerging markets, and European
providers that are building networks within these regions.
Get ready to witness a new era in industry recognition. We listened to the industry and we are proud to announce the launch of a highly anticipated product that’s been in the making for quite a while.
Join us at Booth #111 to find out more!#FinanceMagnates #iFXEXPO pic.twitter.com/cnUdTBz6uv
— Finance Magnates (@financemagnates) June 18, 2024Navigating the Crypto LandscapeThe cryptocurrency market presents
both opportunities and challenges for payments companies. On the one hand,
crypto offers fast, cheap, and borderless transactions, which are highly
appealing in an increasingly globalized economy. The ease of crypto
transactions—where funds can be deposited and withdrawn quickly without the
scrutiny typical of traditional banking systems—is driving adoption among
traders and consumers​​​​.
On the other hand, regulatory
uncertainty remains a significant hurdle. Many countries are still developing
comprehensive regulatory frameworks for crypto transactions, causing
apprehension among payment providers about potential future constraints.
Despite these challenges, some companies are actively embracing crypto, seeing
it as a necessary step to stay competitive and meet client demands. Firms are
investing in compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term measures and expanding their licensing portfolios to
adapt to these evolving regulations​​​​.
However, while many firms are
exploring crypto options, others are choosing to focus on traditional payments,
along with forex. In one extreme example, one representative hinted that their
firm – predominantly targeting the African, LATAM and South American markets –
was avoiding crypto payments due a partner’s financial collapse.
While all this might sound off
putting, almost all of the payment providers working, or seeking to work, in
the crypto space where bullish about the sector’s future. Regulation was seen as
both inevitable and as a positive thing across the board. The questions posed
all related to how, and when, rather than if.
Emerging Markets: A New FrontierEmerging markets are becoming a
focal point for payment providers looking to expand their reach. Africa and
Latin America, in particular, are drawing significant attention due to their growing
economies. Payment solutions tailored to local preferences and regulatory
requirements are crucial in these regions. For example, in Brazil, the Pix
payment method has revolutionized the market, capturing a significant share
from traditional methods like Boleto Bancário​​.
In Africa, increasing internet
penetration and higher incomes are driving demand for more sophisticated
financial services. Payment companies are facilitating this growth by providing
solutions that connect local economies to the global financial system, thus
supporting both local and international transactions​​​​.
In addition, crypto is growing within
Africa as internet penetration rises rapidly and personal income is on the
rise. However, as hinted at before, many companies are cautious about future
regulations.
The Role of Technology and AISeveral of the interviewees highlighted
the increasing impact of technological advancements and how the integration of
artificial intelligence (AI) is transforming the payments landscape.
Payment providers are leveraging AI
to enhance security, streamline operations, and offer innovative solutions that
meet the dynamic needs of the forex and crypto markets. AI-driven insights are
helping companies understand transaction patterns, detect fraud, and provide
personalized services to clients​​.
Moreover, the development of
omnichannel payment solutions is enabling providers to offer a comprehensive
range of services under one platform. This integration simplifies processes for
users and allows companies to adapt to varying consumer behaviors across different
regions. As the demand for diverse payment methods grows, companies are
increasingly focusing on offering multiple solutions to remain competitive​​​​.
The continued growth of the forex
and cryptocurrency markets with the payments sector is driving significant
innovation and expansion. Payment companies are adapting to the regulatory
landscape and leveraging technological advancements to offer secure, efficient,
and versatile solutions. As emerging markets become more integral to global
financial systems, the evolution of payment services will continue to shape the
future of international trade and finance.
The iFX Expo runs until the end of
today.
For more finance and finance-adjacent
stories, visit our Trending
section.
Walking the floor of the iFX Expo in
Limassol, Cyprus, the big story was how payments and payment service providers are adapting
to changing demands and emerging markets, specifically the forex and crypto
spaces.
The following observations are made
following interviews with representatives of payment companies and crypto companies
that were present at the Cyprus iFX Expo (site).
🌟We’ve left a successful iFX EXPO International 2024 Day 1 behind us.
Take a look at the thrilling atmosphere!#iFXEXPOInternational2024 #iFXEXPOInternational #iFXEXPO #Cyprus #Limassol #UltimateFintech #B2Bevent #Networking #Business #Forex #Finance #Fintech #B2BMarketing pic.twitter.com/VjXMpLFzm1
— iFX EXPO (@iFXEXPO) June 20, 2024Expanding Horizons: Payment
Companies and the Forex MarketThe payment sector has witnessed
significant evolution, particularly with increasing integration into the forex
market. Historically, many payment service providers (PSPs) have viewed the
forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi
Read this Term industry as high-risk due to its association with unregulated entities
and potential for fraud. However, this perception is shifting. Providers are
recognizing the financial opportunities and are becoming more open to
collaborating with regulated forex companies to ensure safety and compliance
for their clients​​​​.
This shift is driven by the growing
number of forex traders and the need for robust payment solutions that
facilitate smooth transactions. Many payment companies have long-standing
relationships with large, regulated forex brokers, ensuring secure transactions
and maintaining market integrity. This trend is mirrored by other payment firms
looking to capitalize on the burgeoning demand for forex services, particularly
in emerging markets such as Latin America and Africa​​​​. This was evidenced by
the number of companies both based in these emerging markets, and European
providers that are building networks within these regions.
Get ready to witness a new era in industry recognition. We listened to the industry and we are proud to announce the launch of a highly anticipated product that’s been in the making for quite a while.
Join us at Booth #111 to find out more!#FinanceMagnates #iFXEXPO pic.twitter.com/cnUdTBz6uv
— Finance Magnates (@financemagnates) June 18, 2024Navigating the Crypto LandscapeThe cryptocurrency market presents
both opportunities and challenges for payments companies. On the one hand,
crypto offers fast, cheap, and borderless transactions, which are highly
appealing in an increasingly globalized economy. The ease of crypto
transactions—where funds can be deposited and withdrawn quickly without the
scrutiny typical of traditional banking systems—is driving adoption among
traders and consumers​​​​.
On the other hand, regulatory
uncertainty remains a significant hurdle. Many countries are still developing
comprehensive regulatory frameworks for crypto transactions, causing
apprehension among payment providers about potential future constraints.
Despite these challenges, some companies are actively embracing crypto, seeing
it as a necessary step to stay competitive and meet client demands. Firms are
investing in compliance
Compliance
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term measures and expanding their licensing portfolios to
adapt to these evolving regulations​​​​.
However, while many firms are
exploring crypto options, others are choosing to focus on traditional payments,
along with forex. In one extreme example, one representative hinted that their
firm – predominantly targeting the African, LATAM and South American markets –
was avoiding crypto payments due a partner’s financial collapse.
While all this might sound off
putting, almost all of the payment providers working, or seeking to work, in
the crypto space where bullish about the sector’s future. Regulation was seen as
both inevitable and as a positive thing across the board. The questions posed
all related to how, and when, rather than if.
Emerging Markets: A New FrontierEmerging markets are becoming a
focal point for payment providers looking to expand their reach. Africa and
Latin America, in particular, are drawing significant attention due to their growing
economies. Payment solutions tailored to local preferences and regulatory
requirements are crucial in these regions. For example, in Brazil, the Pix
payment method has revolutionized the market, capturing a significant share
from traditional methods like Boleto Bancário​​.
In Africa, increasing internet
penetration and higher incomes are driving demand for more sophisticated
financial services. Payment companies are facilitating this growth by providing
solutions that connect local economies to the global financial system, thus
supporting both local and international transactions​​​​.
In addition, crypto is growing within
Africa as internet penetration rises rapidly and personal income is on the
rise. However, as hinted at before, many companies are cautious about future
regulations.
The Role of Technology and AISeveral of the interviewees highlighted
the increasing impact of technological advancements and how the integration of
artificial intelligence (AI) is transforming the payments landscape.
Payment providers are leveraging AI
to enhance security, streamline operations, and offer innovative solutions that
meet the dynamic needs of the forex and crypto markets. AI-driven insights are
helping companies understand transaction patterns, detect fraud, and provide
personalized services to clients​​.
Moreover, the development of
omnichannel payment solutions is enabling providers to offer a comprehensive
range of services under one platform. This integration simplifies processes for
users and allows companies to adapt to varying consumer behaviors across different
regions. As the demand for diverse payment methods grows, companies are
increasingly focusing on offering multiple solutions to remain competitive​​​​.
The continued growth of the forex
and cryptocurrency markets with the payments sector is driving significant
innovation and expansion. Payment companies are adapting to the regulatory
landscape and leveraging technological advancements to offer secure, efficient,
and versatile solutions. As emerging markets become more integral to global
financial systems, the evolution of payment services will continue to shape the
future of international trade and finance.
The iFX Expo runs until the end of
today.
For more finance and finance-adjacent
stories, visit our Trending
section.
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